Cape Coral Real Estate - BATTER UP IT'S A LOW BALL OFFER!

Posted by Mary Ray on Thursday, November 18th, 2010 at 11:37pm.

Cape Coral Real Estate - BATTER UP IT’S A LOW BALL OFFER!You’ve done your homework and worked with your realtor and spent time searching Cape Coral Real Estate to find the perfect home and now you’re ready to write an offer……You’ve heard of buyers putting in low ball offers and getting amazing deals. Now you’re thinking I’m going to put a low ball offer in on this home and get your piece of Cape Coral Real Estate 30-100K below the listing price. Well before you go down that route let’s take a look at the basics of putting in an offer on Cape Coral Real Estate. A very important factor on placing an offer on a home depends on what type of housing market it is at the time.  In a seller's market there can be a very limited inventory of homes and a large pool of buyers.  This can create multiple offers for a home and multiple offers can drive the price of homes up quickly add to that a limited inventory and you have a Seller’s market.  It is a very good example of supply and demand in action.Here in Cape Coral we are trending toward it being a buyer’s market with a large inventory of Cape Coral homes for sale including short sales, bank owned and REO homes. That being said also keep in mind that even though it’s a buyer’s market most of the Cape Coral Real Estate has been priced aggressively to sell.  This really can be seen by looking at the pricing on short sales, bank owned and REO homes.  Keep in mind…  Just because it is a buyer's market does not mean that sellers are going to accept an offer that is less than the actual value of the home.Low ball offers are usually received by sellers with a “You got to be kidding me” and “I can’t believe that someone would make that low ball offer to me”.  For instance, offering $ 30-100k less than the asking price in not too likely to be well received by the seller. You truly risk a seller countering back at full price and not willing to negotiate to a lower price or even worst yet a Seller not countering back at all. If an offer that is considered a low ball is made then it will be under the appraised market value of the home and the seller would be taking a loss in selling it. Once again keep in mind… Values have already deeply plunged in Cape Coral Real Estate and list prices for the most part are set aggressively. Sure you can find some homes within the Cape Coral Real Estate Market that are not priced at current market and are priced unrealistic.  This can be explained several different ways. The main explanation can be that the sellers have a mortgage that exceeds current market pricing and still they have chosen to list the home.  Another reason would be just plain and simply unrealistic sellers who are not in touch with the pricing of homes within their neighborhood.   Our team has dealt with putting offers on these types of listing and we use market comparables to show that our offer is within or current market value. Rarely will an unrealistic seller lower the price of their home more than 20-30k.  Sellers who overprice their homes usually end up taking their home off the market or months down the road have to lower their prices to current market value after losing out on possible buyers during the time of overpricing their homes.  There is one good way to avoid insulting sellers by low-balling their home. Ask your realtor what homes are being valued at in that neighborhood.  A good realtor can create a CMA “comparative market analysis on the home by comparing recent sales within the neighborhood and give you a very good idea of current market value on the home. Our team will do a CMA with homes that have sold nearby within 3 months. This way we have current market value. With the help of your Realtor and a CMA of the home you can tailor an offer that will be within current market values and a price you will be happy with and end up with a great home in the Cape Coral Real Estate market. Give us a call and let us help you find your perfect Cape Coral home! 

By David Sporleder | Sporleder-Ray Realty Group | david@davidsporleder.com| Google+

 

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